Coal India Limited to hold e-auction for power plants next week

State-run Coal India Limited (CIL)will next week hold the first phase of special e-auction for the ongoing fiscal to provide coal to power producers as part of the government's efforts to ensure round-the-clock electricity to all.

New Delhi: State-run Coal India Limited (CIL)will next week hold the first phase of special e-auction for the ongoing fiscal to provide coal to power producers as part of the government's efforts to ensure round-the-clock electricity to all.

The special forward e-auction for 2016-17 for power producers including captive power plants (CPP)-Phase I would be held on April 27-28, Coal India (CIL) said in a notice.

The reserve price for power sector consumers will remain at 10 per cent over the notified price of coal for power sector and for CPPs it will remain at 10 per cent over the notified price for non-power sector, CIL said in another notice.

"This, however, is applicable to G6 and below grades of coal," it said.

"The subsidiary coal companies shall notify the source and grade wise reserve price of coal on their respective websites and convey the same to the respective service providers...," it said.

The successful quantity of the bidder will be allocated on equated monthly basis over the months from May to October, it said adding the payment of coal value will be made on monthly basis in two installments as per the bidder's choice.

Last month, Coal and Power Minister Piyush Goyal had informed Parliament that Coal India has offered 14 million tonnes of fossil fuel under special e-auction to both power and non-power sectors in order to facilitate liquidation of pit-head stock.

CIL, a major supplier of coal to the power sector, is also eyeing production of one billion tonnes by 2020.